The service was extended in 2007 on the Windows platform, named Games for Windows – Live, which makes most aspects of the system available on Windows computers. Microsoft has announced plans to extend Live to other platforms such as handhelds and mobile phones as part of the Live Anywhere initiative.[5] With Microsoft's mobile operating system, Windows Phone, full Xbox Live functionality is integrated into new Windows Phones that launched since late 2010.[6] The service shut down for the original Xbox on April 15, 2010 and original Xbox Games are now only playable online through Lan Tunneling applications such as XLink Kai.[1]

The Xbox Live service is available as both a free and subscription-based service, known as Xbox Live Free[7] and Xbox Live Gold respectively, with most features such as online gaming restricted to the Gold service.

As Microsoft developed the original Xbox console, online gaming was designated as one of the key pillars for the greater Xbox strategy. Sega had made an attempt to capitalize on the ever-growing online gaming scene when it launched the Dreamcast video game console in 1999, including online support as standard, called SegaNet and Dreamarena. Nevertheless, due to lack of widespread broadband adoption at the time, the Dreamcast shipped with only a dial-up modem while a later-released broadband adapter was neither widely supported nor widely available. Downloadable content was available, though limited in size due to the narrowband connection and the size limitations of a memory card. The online features, while praised as innovative, were largely considered a failure,[citation needed] and the Dreamcast's immediate competitor, the PlayStation 2, did not initially ship with built-in networking capabilities.

Microsoft, however, hoped that the Xbox would succeed where the Dreamcast had failed. The company determined that intense online gaming required the throughput of a broadband connection and the storage space of a hard disk drive, and thus these features would be vital to the new platform. This would allow not only for significant downloadable content, such as new levels, maps, weapons, challenges and characters, to be downloaded quickly and stored, but also would make it possible to standardize bandwidth intensive features such as voice communication. Steve Ballmer and Bill Gates both had a vision of making premium download content and add-ons that would attract many new customers. Based on this reasoning, the console included a standard Ethernet port (10/100) in order to provide connectivity to common broadband networks, but did not include a modem or any dial-up support, and its online service was designed to support broadband users only. Critics scoffed at it, citing poor broadband adoption at the turn of the century.[8]

When the Xbox launched on November 15, 2001, the as-yet unnamed online service was destined for a Summer 2002 deployment.[9] Xbox Live was finally given a name at E3 2002 when the service was unveiled in its entirety. Sound-dampened booths and broadband-connected Xbox consoles—featuring an early version of Unreal Championship—demonstrated the service on the show floor. The Epic title was one of the flagship titles for the service, which was slated for a debut on November 15, 2002, marking the anniversary of the Xbox launch. Microsoft announced that 50 Xbox Live titles would be available by the end of 2003.[10] Utilizing the required broadband bandwidth, Xbox Live featured a unified gaming "Friends List", as well as a single identity across all titles (regardless of the publisher), and standardized voice chat with a headset and communication, a feature that was still in its infancy.

Leading up to the launch, Microsoft enlisted several waves of beta testers to improve the service and receive feature feedback. The first wave of beta testers were given Revolt! (which never was released officially) and NFL Fever to beta test. Once beta testing concluded, Microsoft sent these beta testers a translucent orange memory card, a headset carrying case, and a beta tester tshirt with the slogan "I have great hands". When the service debuted, it lacked much of the functionality that later titles included, but Xbox Live grew and evolved on the Xbox and many aspects of the service were included with the Xbox 360 console out of the box, rather than through a later update. Microsoft's 5000th patent was Live-related and gave Xbox 360 users access to watch other gamers compete against each other over Xbox Live.[11]

The packaging for playable Xbox Live titles on the original Xbox console featured the trademark gold bar underneath the Xbox header. Tom Clancy's Splinter Cell and Brute Force sported a Live "bubble" design, as they only featured downloadable content. It was changed later, wherein all Xbox Live titles included the universal gold Live bar. By the time of the Xbox 360, all titles were required to provide at least a limited form of Xbox Live "awareness".[clarification needed]

On November 15, 2007, Microsoft celebrated Xbox Live's 5th anniversary by offering its then over 8 million subscribers the title Carcassonne free of charge and awarding gamers who had subscribed to Live since its inception 500 free Microsoft Points. Due to intermittent service interruptions during late December 2007 and early January 2008, Microsoft promised to offer a free Xbox Live Arcade game to all Xbox Live users as compensation, in an open letter to all Xbox Live members from Mark Whitten, Xbox LIVE General Manager.[12] Increased demand from Xbox 360 purchasers (the largest number of new user sign-ups in the history of Xbox Live) was given as the reason for the downtime.[13] On January 18, 2008, Microsoft announced Undertow would be offered free to both Gold and Free members for the week starting January 23 through January 27 as compensation.[14]

On November 12, 2009, Dennis Durkin, COO of Microsoft's interactive entertainment business, announced that November 10, 2009, the release of Call of Duty: Modern Warfare 2 marked the busiest day ever on Xbox Live, with over two million active users simultaneously.[15]

On February 5, 2010, Marc Whitten announced that Xbox Live had reached 23 million members.[16] On the same day, Larry Hyrb, Xbox Live's Major Nelson, announced on his blog that Xbox Live support for the original Xbox would be discontinued on April 15, 2010, including online play through backwards compatibility on the Xbox 360 and all downloadable content for original Xbox games.[17]

In August 2010, Microsoft announced an increase to the cost of Xbox Live Gold in several countries by 20%, for the first time since its inception.[18][19][20] The basic service was also renamed. Prior to October 2010, the free service was known as Xbox Live Silver.[21]

It was announced on June 10, 2011 that the service is going to be fully integrated into Microsoft's Windows 8.[22]

In October 2011, Microsoft announced live streaming cable television with various providers.[23]

In February 2013, Yusuf Mehdi, corporate vice president of Microsoft's Interactive Entertainment Business, shared that Xbox LIVE members now number 46 million, up 15 percent from a year ago. during the D: Dive into Media conference in Southern California.[24]

In June 2014, Microsoft retracted the Xbox Live Gold requirements to download streaming media apps (including Netflix, Hulu, YouTube, Internet Explorer, Skype, and others), though various rental or subscription fees may still aplly.[25][26]

On December 25, 2014, both PlayStation Network and Xbox Live suffered network disruption after a denial-of-service attack.[27] Functionality was restored on December 28, with some users experiencing difficulties in the days that followed.[28][29]

^a Some content available one week after Gold subscribers^b Available in U.S. and Canada only^c Available in UK and Ireland only^d Over 18's only/parental permission required^e Various rental/subscription fees apply^f Available in Portugal only^g Available in Australia only^h Available in France only^i Available in Spain only^j Available in Germany only^k Available in U.S. only^l Available in Canada only^m Discontinued from Xbox live marketplace^n Available in selected markets

Windows Live Messenger allows users of Xbox Live, PCs (Both on the Windows and Macintosh platforms), and Windows Mobile devices to connect and directly message each other. It is possible for eight people to chat with one another at one time, while playing games, listening to music, or watching movies. This complements the existing voice and video chat of Xbox Live. Users will see at a glance if their existing contacts on Windows Live Messenger have Gamertags. As of the December 4, 2007 dashboard update, Windows Live Messenger on Xbox Live is now available to child accounts if the user is 13 years of age or older.

On September 4, 2007, Microsoft launched the Xbox 360 Messenger Kit, which included a small QWERTY keypad known as the Xbox 360 Chatpad that connects directly into the Xbox 360 controller, either wired or wireless, to support text and instant messaging.

UFC on Xbox Live allows users to view pay-per-view events in 1080p HD, access a library of live and on-demand video content, connect with friends to predict fight results and have the ability to compare fighter statistics and records.

Sports Picks allowing users to predict the outcome of sporting events, including UFC, NBA and NHL games, with future support for MLB games and Miss Universe Organization pageants (requires Gold membership)

Various TV on-demand services which are available to all users (no Gold subscription required), albeit restricted by region. Such services include:

A Gamertag is the universal name for a player's username on Microsoft's Xbox Live. A Gamertag used online must be unique and can be up to 15 characters in length, including numbers, letters, and spaces. Gamertags can be changed using an Xbox One or Xbox 360 console (first time is free, then for a price of $10), the Xbox 360 supports 8 Xbox Live-enabled profiles per memory unit and 32 profiles on the hard drive.[43]

A player's Gamertag account status can be checked using a variety of online tools, which is useful especially when looking for a new Gamertag, or confirming that a Gamertag exists. Using a valid Gamertag, any player can be located and messaged from within Live. There are also several websites which allow users of Gamertags to upload photos and information about themselves.

Gamertags also contain avatar images (or "gamer pictures"), sometimes associated with certain games or game characters. On Xbox 360, individual gamerpics cost between $0.17 and $0.25, but they are usually bundled into packs; packs of four or five gamerpics usually cost $1, while packs of ten typically cost $1.87. It is also possible to take "Public" pictures (which are shown to all that view a profile, unless the user has a different "personal" picture set) which can be taken of avatars while using the avatar editor.

Users were formerly forbidden to use strings such as gay or refer to homosexuality in any way in their Gamertag or profile due to it being considered "content of a sexual nature", even if the string occurs in a legitimate surname. Incidents where a woman was suspended from the service for identifying herself as a lesbian, and an incident where a male user was suspended for using his surname "Gaywood" in his username attracted controversy.[44][45][46][47][48] In February 2009, Xbox Live Lead Program Manager for Enforcement Stephen Toulouse clarified the service's policy on sexual identification, stating that "Expression of any sexual orientation [...] is not allowed in Gamertags" but that the company is "examining how we can provide it in a way that won't get misused."[49] Changes announced in March 2010 permit Xbox Live members to express sexual orientation in their gamertags and profiles.[50]

The Gamerscore (G) is an achievements point accumulation system that reflects the number of achievements accumulated by a user on Xbox Live through the displaying of the amount of points accumulated. These Achievement points are awarded for the completion of game-specific challenges, such as beating a level or amassing a specified number of wins against other players in online matches and other various in game challenges.

Initially, retail Xbox 360 games offered up to 1,000G spread over a variable number of Achievements, while each Xbox Live Arcade title contained 12 Achievements totaling 200G. On February 1, 2007, Microsoft announced on their Gamerscore Blog some new policies that developers must follow related to Gamerscore and Achievements in future releases.[51] All regular disc-based games must have 1,000 Gamerscore points in the base game; the title can ship with fewer than 1,000 points, but anything added later must be free. Game developers also now have the option of adding up to 250 points via downloadable content every quarter after the first year of release (for a total of 1,750 points). Xbox Live Arcade titles also allow players to obtain Gamerscore, initially up to 200 Gamerscore with additional points up to 50 Gamerscore via downloadable content (for a total of 250 points),[52] but some XBLA games now contain up to 400 Gamerscore without DLC.

On May 26, 2007, Halo 2 was the first Games for Windows title to feature Achievements, which counted towards a player's Gamerscore.

On March 25, 2008, Microsoft cracked down on "Gamerscore cheaters" (those who used external tools to artificially inflate their Gamerscore), and reduced their Gamerscores to zero without the option to recover the scores that had been "earned", and branded the player by denoting on their Gamertag that they were a "Cheater".[53]

The development of the Gamerscore system has created a new niche in the internet economy. Many websites have been created to provide gamers with tips and tricks for getting achievement points. Some sites are solely devoted to these achievement guides, and some blogs provide gaming guides in addition to their other content.

On March 13, 2014, Ray Cox IV or "Stallion83" became the first player in history to reach 1 million Gamerscore.

A player's Gamercard can be viewed via the Xbox 360 Dashboard, or online through Xbox.com. The top bar that displays the Gamertag is shown in front of either a silver or gold bar which designates if the gamer has an Xbox Live Free or Gold subscription (respectively). If the gamer is part of the Xbox 360 Launch Team, the top bar will also have additional text stating "Launch Team" in the background. Third party sites allow users to post a rendered version of their Gamercard as a small Flash applet or JPEG image on any website or Internet forum.

There are four Gamer Zones; Recreation is for casual gamers, Family is for family-friendly gamers (without profanity, etc.), Pro is for competitive gamers who enjoy a challenge, and Underground is for no-holds-barred gaming where anything goes (as long as it does not violate the Xbox Live Terms of Use). However, in practice these gamer zones are displayed only on the Gamercard of the player, and do not tend to affect the gameplay experience or the matching of players in online games.

When matchmaking, the system attempts to match individuals based on their estimated skill level. If two individuals are competing head-to-head and have the same estimated skill level with low estimate uncertainty, they should each have roughly a 50% chance of winning a match. In this way, the system attempts to make every match as competitive as possible.

In order to prevent abuse of the system, the majority of ranked games have relatively limited options for matchmaking. By design, players cannot easily play with their friends in ranked games. However, these countermeasures have failed due to techniques such as alternate account(s) and system flaws where each system has its own individual TrueSkill rating. To provide less competitive games, the system supports unranked Player Matches, which allow individuals of any skill level to be paired (often including "guests" on an account). Such matches do not contribute to the TrueSkill rating.

Xbox Games Store (formerly Xbox Live Marketplace) is a unified storefront which offers both free and premium content for download including Xbox Live Arcade titles, Xbox indie games, original Xbox games, Xbox 360 game demos, game expansion material (e.g. extra maps, vehicles, songs), trailers, gamer pictures and themes, television shows, music videos, movie rentals, and more.[55]

On 17 November 2009, Microsoft released a downloadable Zune application for the Xbox 360. This application turns the Xbox 360 into a Zune device. Once one downloads the Zune application, it takes over the Marketplace menus and sections of the console. With the addition of the Zune Marketplace to a Xbox 360 console, one is able to purchase movies instead of only being able to rent them. The Zune Marketplace has a much more extensive content offering compared to the classic Xbox Live Marketplace.[55]

Xbox Live Gold is a paid subscription service for the Xbox community. Signing up to Xbox Live is free, but in order to play online and access some core services, a periodic fee is required. Features that require a Gold subscription include online gaming, matchmaking/smartmatch, private chat, party chat and in-game voice communication. Other features, such as game recording and media sharing also necessitate Gold membership.[35][34] Similarly, ordinary Xbox Live members can download and access the Twitch live streaming application, but in order to broadcast gameplay of one's own, a Gold subscription is necessary.[33] Free-to-play titles also remain behind a paywall.[31] Subscribers are benefited with space "in the cloud" for storing files, and granted early or exclusive access to betas, special offers, Games with Gold, and Video Kinect.

At E3 2008, Microsoft announced that all Xbox 360 owners would receive a new dashboard update, titled New Xbox Experience (NXE), on November 19, 2008[60] that has added many new features. Though the new interface is generally downloaded when a new Xbox is connected to Xbox Live, some games, including Fight Night Round 4 and Dragon Ball: Raging Blast, will also update it.

One feature is the ability to watch standard quality and 720p streaming movies and TV shows from Netflix through the Xbox 360. This feature is only available in the U.S. and Canada, and requires an Xbox Live Gold subscription and Netflix Unlimited. Users are also able to watch Netflix titles with their friends in a party of up to 8 players. Xbox Live members have the ability to view over 12,000 movies and episodes. Users can browse for titles based on their interests and Netflix ratings with the Xbox interface. Users no longer need to visit the website to choose the content to watch.[61][62] When a player parties up with a group, they also have the ability to join games together, chat together or view a slideshow of photos.

Another feature gives players the ability to create Avatars. Players are able to customize avatars by changing body shape, facial features, hair and clothes, as well as new clothing being released from time to time.[63] Xbox Live requires that users select an avatar.[60] Another feature is the ability to install an entire game disc onto the Xbox 360's hard drive, which decreases loading times, and significantly reduces noise due to the game being read from the hard drive and not the louder disc drive (similar to the PS2 HD LOADER Feature). For most games this feature also reduces the amount of time spent reading the disc, thereby helping to extend the life-span of the optical drive mechanism.[64]

During the Press Conference at E3, Microsoft announced Xbox Live Primetime, a series of scheduled programs where Xbox Live members can play against each other. The first announced game is an adaptation of the Endemolgame show1 vs. 100 in which one Xbox Live member will play against 100 other members with a live host and prizes awarded.[65] On July 15, 2010, Microsoft confirmed that 1 vs. 100 would be cancelled.

The Xbox Guide has also been redesigned. Players are not only able to view their friends and messages, but are able to access their game library. If a user has installed any game onto their Xbox 360 Hard drive, they are able to immediately start the game from the guide, whether they are in a game or in the dashboard. Microsoft also confirmed that every new 360 comes with 3 free Xbox Live Gold trial accounts, upon creating a new account the player is allowed to claim a trial period upon refusing to pay for Gold subscription; therefore allowing the user to try online gameplay for that one-month trial period, after which the player is required to pay subscription fees to continue matchmaking online.[66] Major Nelson also announced that the update supports 16:10 on VGA or HDMI, expanding the choice of resolutions.[67]

While previous system updates have been stored on internal memory, this is the first update to require a storage device. The update requires at least 128MB free space on either a memory card or a hard drive.[68] Microsoft has stated that many Core or Arcade users will not have sufficient space on their limited memory cards for the new update and thus provided them with a free 512MB memory card or a discounted 20GB hard drive for a limited time.[69][70] This promotion has since ended and all new arcade units now come with 512MB of internal memory.[citation needed]

The NXE was leaked onto Torrent sites and could be installed via a USB drive. Microsoft's Major Nelson stated that unauthorized installation of NXE would result in the user's console being banned from Xbox Live until its official release which was on November 19, 2008.[71]

On September 22, 2010, Major Nelson announced that the Xbox Live dashboard would be redesigned once again. The new design would incorporate the Metro interface used in other Microsoft products, such as Zune HD and Windows Phone. As well as a new color scheme and other minor tweaks to the overall layout, the update would also include a "Kinect hub", designed specifically for the Kinect sensor for easier dashboard navigation. Xbox Live members were able to sign up for a preview program, which opened on September 29, 2010.[72] The new dashboard officially went live on December 6, 2011.[73][74]

On June 6, 2011 at E3, it was announced that the dashboard would be updated again to include the Bing search engine, allowing users to search for games, trailers, movies etc. Kinect would also be updated allowing users to navigate the dashboard and Bing using their voice. Other updates would include cloud storage, YouTube access and live television streaming.[75] The dashboard update was delayed till December 6, 2011.[76]

On May 13, 2014, Microsoft announced changes to the Xbox Live Gold membership that would allow subscribers to access available apps such as Netflix, Twitch, MBL.tv, etc. without a Gold membership on both Xbox One and Xbox 360 consoles, though various rental or subscription fees still apply.[77] Microsoft would be offering pro-rated refunds for the service for requests up until August 31, 2014. The company also announced "Games with Gold" that would give subscribers free games on both Xbox 360 and Xbox One with one single membership, and "Deals with Gold" for exclusive discounts for Xbox One games at the Xbox store.[78]

On November 6, 2006, Microsoft announced the Xbox Video (formerly Xbox Video Marketplace), an exclusive video store accessible through the console. Launched in the United States on November 22, 2006, the first anniversary of the Xbox 360's launch, the service allows users in the United States to download high-definition and standard-definition television shows for purchase and movies for rental onto an Xbox 360 console for viewing. With the exception of short clips, content is not currently available for streaming, and must be downloaded. Movies are available for rental from the Video Marketplace. They expire in 14 days after download or at the end of the first 24 hours after the movie has begun playing, whichever comes first. Television episodes can be purchased to own, and are transferable to an unlimited number of consoles. Downloaded files use 5.1 surround audio and are encoded using VC-1 for video at 720p, with a bitrate of 6.8 Mbit/s.[79] Television content is offered from MTV, VH1, Comedy Central, Turner Broadcasting and CBS; and movie content is Warner Bros., Paramount and Disney, along with other publishers.[80]

"Xbox Ambassadors" are Xbox Live members selected by Microsoft who have proven themselves to be helpful towards others, and are willing to assist new Xbox Live users and answer their questions. As of March 2009, there are ambassadors representing 18 countries in more than 30 languages.[84]

"Xbox Rewards" was a promotion designed to provide gamers incentives to play on Xbox Live by subsidizing achievement points earned with actual rewards. Gamers were required to register for specific challenges which, if successfully completed, would yield a challenge-specific reward.

"Xbox Live Rewards" is a current promotion providing Xbox LIVE Members Microsoft Points when they renew their Gold Membership, buy something on the Marketplace, etc.

"Xbox Live Labs" was a program found in the community section and was available from March 10 to March 27, 2011 for members in the United States. If a player chose to participate, they were rewarded with avatar items and 3 zero-point achievements.[citation needed]

SentUAMessage was a show which aimed to answer questions sent in by viewers on anything related to the world of Xbox. The show ran for four series and was released every other Saturday. The show was driven entirely by user-generated questions. To ensure the volume of questions remained high, fans could contact the show in a variety of ways, including sending questions to the SentUAMessage Gamertag over Xbox LIVE, writing an email, or using social network websites.[citation needed]

On November 19, 2009, integration with Facebook, Twitter and Last.fm was added with access available to all Xbox Live Gold subscribers. These features were initially only available to adult (18+) accounts, but Microsoft has since made the service available to users under the age of 18, subject to parental permission (use must be authorized using the parent's account and password).[citation needed]

Facebook features on the console are limited compared to the browser-based version, with users currently only able to update their status, comment on and "like" friends' statuses, and view their own and friends' pictures. There are also some features on the Xbox 360 that are not included on the main website; the Xbox Live Friend Finder allows users to see which Facebook friends use Xbox Live, while the Facebook Friend Finder allows users to see which Xbox Live friends use Facebook.

The Facebook and Twitter applications on Xbox Live were removed with the new Xbox 360 Dashboard update that was released on October 16, 2012.[85] Microsoft suggests that users now access Facebook and Twitter through Internet Explorer on Xbox 360 instead.

Microsoft implements a number of different security measures on its Xbox Live service. One of these takes the form of a proactive security check that assures that only unmodified machines may access their service. On May 17, 2007, Microsoft banned consoles with modified firmware from Xbox Live. According to Microsoft, consoles with firmware of unknown origin, quality or intent were banned permanently from Xbox Live. A Microsoft representative indicated that the action was taken to assure "the integrity of the service and protect our partners and users."

It has been discovered that pretexting has been used to impersonate an Xbox Live user for sabotage. Microsoft has implemented greater security to decrease the service's susceptibility to social engineering.[86]

In early November 2009 Microsoft banned approximately 1 million consoles with modified firmware from Xbox Live.[87]

In October 2011, users of Xbox Live reported having unauthorized access to their Xbox Live accounts, with Microsoft points subsequently being used and/or bought to purchase various in-game items for FIFA 12. Microsoft is responding to such incidents by restricting access to the account for 25 days whilst the fraud team investigates. Both EA and Microsoft have denied that there is a problem with security.[88]

Users from other countries are not officially supported, although it is possible for them to access Xbox Live if they provide an address located in a country where Xbox Live is officially available. The country selected during account creation affects the payment options, content, and services available to the user.[90] Previously, users were unable to change their account region, but in October 2012, Microsoft introduced an account migration tool as a pilot project, which allows the user to change their region and maintain their Xbox Live profile. Subscriptions, such as that for Xbox Music, cannot be transferred with this method.[91]

On May 18, 2011, Microsoft announced that it planned to launch Xbox Live in the Middle East within the next twelve months,[92] but it never occurred during that time period. However, on October 20, 2012, Microsoft officially announced the service will be launching in the United Arab Emirates and Saudi Arabia in three days time.[93] On November 4, Microsoft announced that the service would be launched on November 29 in Argentina and Israel.[94] The service also appeared in the following month in Slovakia and Turkey.[citation needed]

^"Interview: Microsoft's Davison On How Kinect Will Help Xbox Live Ramp Up". Gamasutra. 2010-11-02. Retrieved 2010-11-15. With this dashboard update, you guys are also increasing the yearly subscription fee to $60. When you compare that to services like the PlayStation Network, which has all of their core online services free, how do you guys justify that significant... At this point, it's the cost of a full retail game. What do you feel justifies that price?

^"Microsoft surrenders on Linux Kinect hack". ZDNet. 2010-11-12. Retrieved 2010-11-15. The company has admitted that users of its XBox Live online service spend only 60% of their time playing games, and that the company was able to raise its price on the service by 20%.